The Thompson Law Firm, P.A.

Attn: George E. McDowell, Jr.

1318 Third Ave.

Conway, South Carolina 29526

My file number: 17420.34

STATE OF SOUTH CAROLINA ) DECDARATION OF PROTECTIVE

) COVENANTS, RESTRICTIONS, EASEMENTS,

COUNTY OF HORRY ) CHARGES AND LIENS

FOR COVINGTON LAKE AT CAROLINA FOREST

THIS DECLARATION OF PROTECTIVE COVENANTS, RESTRICTIONS, EASEMENTS, CHARGES AND LIENS FOR COVINGTON LAKE AT CAROLINA FOREST (hereinafter referred to as "Declaration") made this 9th day of December, 1996 by Covington Lake, L.P., a South Carolina Limited Partnership, with its principal place of business located in Myrtle Beach, South Carolina (hereinafter referred to as the "Declarant"):

W I T N E S S E T H :

WHEREAS, Declarant is the owner of real property located in Horry County in Carolina Forest and more particularly described in Exhibit "A" of this Declaration, which Exhibit "All is made a part and parcel hereof by this reference; and

WHEREAS, Declarant desires to develop thereon a residential subdivision to be known as "Covington Lake at Carolina Forest" and subject the property described on Exhibit II All to this Declaration; and

WHEREAS, the Declarant, in its discretion, may incorporate additional real property as additional phases of this development and bring same under this Declaration for Covington Lake at Carolina Forest Subdivision (“Covington Lake”); however, Declarant shall be under no obligation to so incorporate additional phases; and

WHEREAS, the Declarant is desirous of establishing and maintaining design criteria, location and construction specifications, and other controls to assure the integrity of the development; and

WHEREAS, each owner of a Lot in Covington Lake will be obligated to construct and maintain homes in accordance with the design criteria herein contained; and

WHEREAS, the Declarant desires to provide for the preservation of the values and amenities in the development and for the maintenance of common lands and faculties, if any, and to this end, desires to subject the real property described in Exhibit "A", to the covenants, restrictions, easements, charges and liens hereinafter set forth, each and all of which is and are for the benefit of said property and each owner thereof; and

WHEREAS, the Declarant has deemed it desirable, for the efficient preservation of the values and amenities in such community, to create an property owners association to which power and authority shall be assigned for: (1) maintenance and administration of the Development (as defined hereinafter), (2) promulgation of rules and regulations for the usage of common areas in accordance with this Declaration, (3) administration and enforcement of the covenants and restrictions, and (4) the levying, collection, and disbursement of the assessments and charges hereinafter created; and

WHEREAS, the Declarant has caused to be incorporated under the laws of the state of South Carolina, as a Not-for-Profit corporation to be known as the Covington Lake Property Owner's Association, Inc. for the purpose of exercising the aforesaid functions.

NOW THEREFORE, the Declarant declares that the real property described in Exhibit "A", annexed hereto and forming a part hereof, is and shall be held, transferred, sold, conveyed and occupied subject to the covenants, restrictions, easements, charges and liens hereinafter set forth.

ARTICLE I

Definitions

Section 1. The following words when used in this Declaration or any Supplemental Declaration (unless the context shall prohibit) shall have the following meanings:

(a) “Annual Assessments" or “Assessments” shall mean an equal assessment established by the Board of Directors for common expenses as provided for herein or by a subsequent amendment which shall be used for the purpose of promoting the recreation, common benefit and enjoyment of the Owners and occupants of all Lots and the operation, maintenance and repair of the Common Area.

(b) “Association” shall mean and refer to Covington Lake Property Owners Association, Inc., its Successors and Assigns.

(c) "Common Area" shall mean and refer to those areas of land, including the facilities to be constructed thereon, if any, shown and specifically designated as such on any subdivision map of the Properties (as hereafter defined) filed by Declarant or by any other means so designated by Declarant.

(d) "Declarant" shall mean and refer to Covington Lake, L. P. , its Successors and Assigns in the development of the Properties, but shall not include an owner of an individual Lot located within the Properties.

(e) "Declaration" shall mean and refer to this Declaration of Protective Covenants, Restrictions, Easements, Charges and Liens for Covington Lake at Carolina Forest Subdivision.

(f) "Development", "Project" "Covington Lake" and "Community" shall all mean and refer to the project known as Covington Lake at Carolina Forest Subdivision as developed by the Declarant.

(g) "Lot" shall mean and refer to any plot of land intended for residential use, with delineated boundary lines appearing on any recorded subdivision map of the Properties with the exception of any Common Area shown on a recorded map and shall further exclude any area designated as a "pump station" on any plat of the Properties. In the event any Lot is increased or decreased in size by subdivision, the same shall nevertheless be and remain a Lot for the purposes of this Declaration. This definition shall not imply, however, that a Lot may be subdivided if prohibited elsewhere in this Declaration.

(h) "Member" shall mean and refer to all those owners who are members of the Association, as provided in Article V hereof.

(i) "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of the fee-simple title to any Lot (s), but shall not mean or refer to any mortgagee or subsequent holder of a mortgage, unless and until such mortgagee or holder has acquired title pursuant to foreclosure or any proceedings in lieu of foreclosure. Said term "Owner" shall also refer to the heirs, successors and assigns of any Owner.

(j) "Phase I" shall mean the Properties described in Exhibit "A" hereto.

(k) "Properties" shall mean and refer to all property including Lots and Common Areas which are described in Exhibit "A" together with any additional phases that may be developed and specifically submitted to the provisions of this Declaration pursuant hereto.

(l) "Setback" shall mean an area along the boundary of a Lot where no building or other structures including, without limitation, swimming pools or decks shall be permitted, without the prior, express written permission of Declarant. However, the location of normal air handling and heat, ventilation and air conditioning units within such Setback area shall be permissible so long as it is in conjunction with an approved residential structure located on a Lot.

(m) "Subsequent Amendment" or "Supplemental Declaration" shall mean an amendment to this Declaration which adds property to this Declaration and makes it subject to the Declaration. Such Subsequent Amendment may, but is not required to, impose, expressly or by reference, additional restrictions and obligations on the land submitted by that Subsequent Amendment to the provisions of the Declaration.

ARTICLE II

Property Riqhts

Section 1. Conformity and Approval of Structures. No structure, fence, sidewalk, wall, swimming pool or other improvement shall be placed or altered on any Lot except in accordance with the provisions of this Declaration. Additionally, no structure, once built; may be improved, remodeled or enlarged except in accordance with the provisions of this Declaration, and specifically Article III herein.

Section 2. Subdivision of Lot. No Lot shall be subdivided except as hereinafter provided and no building or residence, including porches, swimming pools or projections of any kind, shall be erected so as to extend over or across any of the Setbacks as hereinafter established except as herein provided. Provided, however, two or more Lots may be combined to provide one building site in accordance with this Declaration. This provision shall not prohibit the Declarant from combining portions of Lots, relocating, or consenting to the relocation of Lot lines or to a readjustment or relocation of building lines in the development so long as the general type and character of the development are not affected thereby. In the event that an Owner desires to combine two (2) or more adjoining Lots for the purpose of constructing and maintaining a single residence thereon, the resulting combined Lots shall from that date forward be deemed one Lot for the purposes of this Declaration.

Section 3. Increased Size of Lots. A Lot or Lots may only be subdivided provided the effect is to increase the size of both of the adjoining Lots. In such cases, the Declarant may alter the building lines to conform to the new Lot(s). Should the Owner or Owners of any Lots and/or portions of Lots which have been combined for a single building site subsequently wish to revert to the original plan of subdivision, or make any other combination which would not be in violation of this restriction, such may be done only if the written consent of the Declarant is first had and obtained. In such instances, the adjoining Lot owners, or other Owners in the subdivision do not have the right to review, pass on or interfere with such Lots rearrangement, as such rights shall be exclusively that of the Declarant or any successors or assigns to whom the Declarant may expressly have transferred such rights. However, the purchaser of any other Lot in the subdivision does not, by virtue of his status as a purchaser, become any such successor or assign.

Section 4. Alteration of Setback Lines in the Best Interest of Development. Where because of size, natural terrain, or any other reason in the opinion of the Declarant, it should be in the best interest of the development of this subdivision that the Setback lines of any Lot should be altered or changed, then the Declarant reserves unto itself, its successors or assigns, and no other, the right to change said Setback lines to meet such conditions. The Declarant specifically reserves the right to transfer and assign this right of approval to the Architectural Control Committee hereinafter established.

Section 5. Completion of Improvements. The exterior of all dwellings and other structures constructed upon any Lot must be completed within one (1) year after the construction of same shall have commenced, except where such completion is impossible or would result in great hardship to the Owner or builder due to strikes, fires, national emergencies or natural calamities. No building under initial-construction shall be occupied until construction is completed and all necessary approvals of any governmental authorities have been obtained.

Section 6. Residential Use of Lots. All Lots shall be used for residential purposes exclusively. No structures, except as hereinafter provided, shall be erected, altered, placed or Permitted to remain on any Lot other than one (1) detached single family dwelling constructed in accordance with the Plans and Specifications herein defined in Article III. No timesharing, interval ownership or other related ownership scheme where the right to exclusive use rotates among multiple owners or members of the program shall be permitted. No separate storage or other out -building shall be permitted; all storage rooms must be attached to, form a part of and conform to the architectural scheme and appearance of the dwelling. In addition, no leasing or rental of any dwelling shall be permitted having a duration of less than 6 months nor shall less than the entirety of any dwelling be leased. Declarant or its assignee may, however, occupy a sales office, models and construction office (hereinafter referred to collectively as the “Office”) upon one or more Lots until all Lots to be located within the Properties have been sold. Declarant reserves the right to own the properties where the Offices are located or lease them from an unrelated party.

Section 7. Maintenance of Lots. It shall be the responsibility of each Lot Owner to prevent the development of any unclean, unsightly, or unkept condition of buildings or grounds on such Lot which shall tend to decrease the beauty of the neighborhood as a whole or the specific area. Each owner shall maintain his Lot and shall keep underbrush and weeds mowed.

Section 8. Nuisances. No noxious, unlawful or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon tending to cause embarrassment, discomfort, annoyance or a nuisance to the neighborhood. No plants, poultry, animals (other than household pets), devices, or things of any sort, the normal activities or existence of which are in any way noxious, dangerous, unsightly, unpleasant or of a nature as may diminish or destroy the enjoyment of other property in the neighborhood shall be placed, kept or maintained on any Lot. Without limiting the foregoing, exterior lighting may not be so installed on any Lot as to illuminate any portion of a neighboring Lot or to shine into any window or otherwise enter a dwelling located on an adjoining Lot. Garage doors must be closed except when entering or exiting said garage.

Section 9. Exclusion of Above Ground Utilities. All electrical service and telephone lines shall be placed underground and no outside electrical lines shall be placed overhead. No exposed or exterior radio or television transmission or receiving antenna shall be erected, placed or maintained on any part of a Lot. Provided, however, that the normal service pedestals, etc., used in conjunction with such underground utilities shall be permitted within the Development. Overhead utilities shall be permitted during the construction period and until utility companies can place them underground. "Satellite dish" antennas and similar equipment shall not be allowed except in the rear yard (to the rear of the dwelling) and must be screened from view from adjoining Lots.